Allentown City Council OKs Joe McMahon for managing director post

APRIL GAMIZ / THE MORNING CALL

Joe McMahon answers questions from Allentown City Council. Council confirmed McMahon as Allentown's new managing director Wednesday, filling the city's top bureaucratic position which has been vacant for two years.

Joe McMahon answers questions from Allentown City Council. Council confirmed McMahon as Allentown's new managing director Wednesday, filling the city's top bureaucratic position which has been vacant for two years. (APRIL GAMIZ / THE MORNING CALL)

Joe McMahon was confirmed as Allentown’s new managing director Wednesday, filling the city’s top bureaucratic position that has been vacant for the last two years.

Allentown City Council voted 6-1 in favor of McMahon who was nominated by Mayor Ray O’Connell last week. Councilman Ed Zucal was the only no vote.

McMahon is a veteran Allentown employee who spent the bulk of his career in the city’s water and sewer department before moving to the Lehigh County Authority where he worked for seven years.

Most recently, he has served as manager of the Whitehall Township Authority.

McMahon takes a job last held by Managing Director Francis Dougherty, who resigned in 2016 amid the FBI probe of Allentown City Hall. Dougherty pleaded guilty one year later to a count of conspiracy to commit mail and wire fraud, and was a key witness for the prosecution during Mayor Ed Pawlowski’s trial earlier this year.

Pawlowski was convicted in March of 27 counts for his role in several pay-to-play corruption schemes that traded city contracts for campaign donations. He resigned the same month.

Council members questioned McMahon about his approach to the job and praised McMahon for his local roots. Councilman Daryl Hendricks noted that several prior candidates nominated by Pawlowski were not raised in Allentown.

Councilwoman Cynthia Mota asked McMahon about what challenges he would like to tackle on the job. McMahon said O’Connell will set the agenda, but the city has a morale problem among employees, he said.

“This has been trying times for the last couple years, so we need to get everyone focused on what their job is,” he said.

Several council members raised concerns about McMahon’s history with LCA given an ongoing dispute between the city and the authority.

Allentown has been at odds with the authority over the $211.3 million lease that LCA signed with the city in 2013. The deal gave the city a one-time infusion of cash in exchange for LCA’s right to operate the city’s water and sewer systems and collect from ratepayers for their services.

In 2016, the authority began a legal action against the city, contending Allentown “improperly inflated” rates against suburban customers to generate more revenue. The authority said it agreed to lease the system based on those inflated numbers.

Recently, LCA announced a proposal to charge Allentown customers monthly instead of quarterly to increase revenue from the system. Allentown officials have vowed to fight the plan.

During his tenure with LCA, McMahon worked as projects manager and later operations manager. He said he helped to prepare LCA’s bid for the lease, but was not there when the deal was finally put in place.

“Because I worked for LCA for seven years doesn’t mean I’m going to give in to what they need if it’s not within the contract and if it’s not in the best interest of the city,” McMahon told council.

But the city also does not want LCA to fail, McMahon said, nor does LCA want the city to fail. Both scenarios would be bad for residents, he said.

“There are people nervous on both sides that want to see a reasonable resolution,” he said.

Councilman Julio Guridy warned McMahon that the city needs to focus on its own residents.